Kinetic Alpha

Practice focus · Digital & Derivatives

The instruments arrived before the plumbing did.

Perpetual futures came onshore, tokenized securities reached the exchanges, and a tokenized ETF was posted as margin at a clearing house — all inside twelve months, and all without the market-structure statute that was supposed to authorize it. What arrived instead was a set of instruments running on a settlement layer that still keeps banking hours.

This section covers both halves: the contract mechanics — funding, margin, liquidation, settlement-window construction — and the collateral rail underneath them, where the more durable structural change is happening.

58 hrs
a week markets trade with no central-bank rail open
7 venues
compared across 18 dimensions of margin and liquidation design
$19B
the cascade the margin work is anchored on

1 · Perpetuals — the format that came onshore

A perpetual is a funding-rate mechanism wearing a futures contract. It arrived in the US regulated perimeter faster than the margin frameworks around it did, which makes the design details load-bearing rather than academic.

2 · Contract design from first principles

Where the practice specifies rather than observes: full instrument designs — settlement window, funding construction, margin treatment — and the no-arbitrage relationships that discipline a listed complex.

3 · The settlement layer — what actually moves the money

The most consequential thread here, and the one furthest from the instruments themselves. Trading went continuous; the settlement rail underneath it did not. Everything about tokenized collateral follows from that gap.

4 · Margin, collateral and what breaks under stress

The connective tissue across everything above — and the part of the practice that comes directly from clearing-house risk work rather than from observation.

Where this connects

The threads that run out of this one.